A UK limited company pays into a director's pension by making employer contributions to a Self-Invested Personal Pension or workplace scheme. Employer contributions are deductible against corporation tax, are not treated as employee income, and are not subject to Class 1 National Insurance. The annual allowance for 2025/26 and 2026/27 is £60,000, combining personal and employer contributions, with carry-forward of unused allowance from the previous three years.
If you're operating as a sole trader, you can contribute to a personal pension scheme.
If you're a limited company director, you can make pension contributions as an individual (as an employee), as well as through your company (as an employer). For the latter option, your pension contributions are paid directly from your business bank account.
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